Regional differentiation of economic growth in Belgium: 1846-1977

Abstract

This paper focuses on the regional differences in employment growth in the Belgian provinces. Since re gional transformations are long-run processes, the period studied covers the years between 1846 and 1977. It starts with the spatial and sectoral diffusion of modern indus trialization, continues with the tertialisation process that went together with 20th century urbanization and ends with the recent crisis. In a first section, the growth figures and the changing shares of the provinces are discussed. A second section looks for an explanation of these changes. The differences of the sectoral structures and the specific regional advantages are combined in the shift share model. Finally, some effects of the differen tiation of growth on the labour market are presented. An economic crisis is a period of fast transformation of an economy. Tra ditional activities are restructured or broken down, and, if the transforma tion is successful, replaced by new activities. The present crisis once again makes it clear that the process affects regions very differently. This difference may be exemplified by the rates of unemployment. Despite the small geographical dimensions this applies also to Belgium: between 1972 and 1981 the average rate of unemployment with men was 3.5 % in Luxemburg and 7.1 % in Li?ge; with women the lowest figure was 7.3 % in Brabant and the highest 16.4 % in Limburg. This paper is meant as the beginning of an attempt to explain such regional differences. Attention is paid mainly to the growth of employment in a long term perspective. This should allow an overview of fundamental structural changes in employment. Our starting point is the unequal spatial distribu tion of employment (section 1). The explanation of regional shifts is based on the unequal sectoral structure, i.e. the unequal participation in the industrialization and tertiarisation process, and on specific regional cha racteristics. Both dimensions are taken up in the shift and share model (section 2). In the third section, some effects of the regional changes in the labour market are discussed. . SIZE AND DISTRIBUTION OF EMPLOYMENT A study of this kind naturally requires reliable data on employment. Despite recent ample attention to the subject(i), the situation is not entirely satisfactory. The points of view are variedU) and for certain types of activity there is no reliable information at all. The latter defect espe cially applies to outworkers^) in 1846. Also for agriculture rather complex corrections and/or re-estimates are necessary for the pre-world-war I pe riod. (+) Address aTTcommunications to: Guido L. De Brabander, Universiteit Antwerpen, Universitaire Faculteiten Sint-Ignatius, Prinsstraat 13, B-2000 Antwerpen, Belgium This content downloaded from 207.46.13.133 on Fri, 22 Jul 2016 05:26:59 UTC All use subject to http://about.jstor.org/terms